DiNapoli Announces Sale of New York's First Environmental, Social and Governance General Obligation Bonds Series 2026A Tax-Exempt and 2026B Taxable (Sustainability Bonds)

What this means

A factual summary is pending editorial review. The complete official release is reproduced below with issuer attribution and a direct link to the original publication.

Official release

Source material from New York Office of the State Comptroller. The wording below is the issuer’s statement.

State Comptroller Thomas P. DiNapoli announced the sale of New York State General Obligation (GO) Bonds totaling $318.9 million through competitive sale. This is the first time the State’s GO bonds have been issued with an Environmental, Social and Governance (ESG) designation. Specifically, two series of bonds were sold consisting of $259,415,000 of Series 2026A Tax-Exempt Bonds (Sustainability Bonds), and $59,460,000 of Series 2026B Taxable Bonds (Sustainability Bonds).

The net proceeds from the sale will finance projects authorized by various bond acts. The bonds are scheduled to be delivered on September 30, 2026.

“These bonds, all of which have been approved by the voters, will pay for essential investments in transportation, education and environmental projects,” DiNapoli said. “The ESG designation as Sustainability Bonds demonstrates the State’s commitment to progress by financing projects for environmental and social issues. Strong market interest was generated by the safety and rarity of the NYS GO credit, translating into favorable pricing for the state.”

The winning bids were as follows:

Series 2026A Tax-Exempt Bonds (Sustainability Bonds) to BofA Securities, Inc. with a true interest cost bid of 4.283207%;

Series 2026B Taxable Bonds (Sustainability Bonds) to Wells Fargo Bank, National Association with a true interest cost bid of 4.888999%;

The state received 7 legitimate bids for the $259.4 million of Series 2026A Tax-Exempt Bonds (Sustainability Bonds). The net proceeds of the tax-exempt bonds will finance projects authorized by the following bond acts: Environmental Quality (1972), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005), Smart Schools (2014), and Clean Water, Clean Air, and Green Jobs (2022). The Series 2026A Tax-Exempt Bonds (Sustainability Bonds) will mature over fifteen years, 2032 through 2046.

The state received a total of 10 legitimate bids for the $59.5 million of Series 2026B Taxable Bonds (Sustainability Bonds). The net proceeds of the taxable bonds will finance projects authorized by the following bond acts: Environmental Quality (1986), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005), Smart Schools (2014), and Clean Water, Clean Air, and Green Jobs (2022). The Series 2026B Taxable Bonds (Sustainability Bonds) will mature over six years, 2027 through 2032.

A summary of bids received for each series can be viewed here:

https://www.osc.ny.gov/files/press/pdf/nysgo-2026ab-sustainablility-bonds-bid-summary.pdf

The Series 2026A Tax-Exempt Bonds (Sustainability Bonds), and the Series 2026B Taxable Bonds (Sustainability Bonds) are rated AA+ by S&P Global Ratings, Aa1 by Moody’s Ratings, AA+ by Fitch Ratings and AA+ by Kroll Bond Rating Agency, LLC.

Release text attributed to New York Office of the State Comptroller. Consult the official publication for any subsequent corrections or updates.